Loan Portfolio Analytics

Financial institutions of all sizes are now expected to actively analyze and monitor their loan portfolios on a regular basis in a consistent and objective manner. Regulators are increasing the frequency of audits and demanding more sophisticated analysis with each visit.

Financial institutions can no longer simply book loans and forget about them; they must go back regularly and revisit the value of the collateral backing the loan and the credit worthiness of the borrower, current cash flow of the borrower, as well as other items that may change. Considering the current national financial crisis, many people have experienced changes in their personal and business finances. All of this and more must be monitored by the financial institution.

As financial institutions prepare for or respond to an examination, questions around the loan portfolio are asked: what are the examiners asking for? How deep do they want the bankers to drill to find issues with the loan portfolio? What kind of data do they want from the institution? You may say, "but my institution is clean with very few problem loans, I won't need to do any of this research" - think again. They are also looking for loans that could go bad or the data to defend a clean portfolio.

They are looking for real- time asset valuations, objective loan grading, stratification analysis, probable loss modeling, and stress test simulations. Additionally, they want EVERY loan monitored - which means 100% loan penetration on reviews. The board of directors is expected to know about all the nonperforming loans and monitor bank management as they work to correct the problems.

Fortunately we can help, the Silverback Portfolio Analytics can manage this required information with a few mouse clicks, no matter the size and type of loan portfolio. If you would like more information, click here. We promise your time will be well spent.